76. Which of the following events does not require a journal entry?
A. Purchase of a one-year insurance policy.
B. Agreement to perform a service at a future date.
C. Payment for a service performed previously.
D. All of these choices.
77. When a company has performed a service but has not yet received payment, what is the required journal entry to be recorded?
A. Accounts Receivable Debit; Service Revenue Credit
B. Service Revenue Debit; Accounts Payable Credit.
C. Service Revenue Debit; Accounts Receivable Credit
D. No entry is required until the cash is received.
78. When a service has been performed, but no cash has been received, which of the following statements is true?
A. The entry would include a debit to Accounts Receivable.
B. The entry would include a debit to Accounts Payable.
C. The entry would include a credit to Unearned Revenue.
D. No entry is required until the cash is received.
79. The controller for Tires and More, Inc. has recorded the following transactions during the month: the purchase of equipment for $8,500 cash; payment of $6,300 for 3 months rent; and, collection of $2,400 from a customer for services performed. At the beginning of the month the owner established the business by making an investment of $15,000 cash. What is the balance in the Cash account at the end of the month, and is the balance a debit or a credit?
A. $2,600 debit.
B. $2,600 credit.
C. $6,800 debit.
D. $15,200 debit.
80. The controller for Tires and More, Inc. has recorded the following transactions during the month: the purchase of supplies on credit, $4,200; receipt of a bill for utilities for the month which is due on the 15th of the next month, $1,200; and, partial payment on the balance due for supplies, $800. What is the balance in the Accounts Payable account at the end of the month assuming a beginning balance of $0, and is the balance a debit or a credit?
A. $4,600 debit.
B. $4,600 credit.
C. $3,400 credit.
D. $5,400 credit.
81. The controller for Tires and More, Inc. has recorded the following transactions during the month: the owner established the business with a $20,000 investment on the 1st of the month; the company recorded $36,000 of revenue for tires and services provided during the month; and expenses of $22,000 were recorded for the month. What is the balance ofOwners Equity at the end of the month, and is the balance a debit or a credit?
A. $34,000 debit.
B. $34,000 credit.
C. $20,000 credit.
D. $6,000 debit.
82. The controller for Tires and More, Inc. has recorded the following transactions during the month: the owner established the business with a $20,000 investment on the 1st of the month; the company recorded $36,000 of revenue for tires and services provided during the month; and expenses of $22,000 were recorded for the month. Additionally, on the last day of the month the owner withdrew $2,000 for personal expenses. What is the balance of Owners Equity at the end of the month, and is the balance a debit or a credit?
A. $32,000 debit.
B. $32,000 credit.
C. $18,000 credit.
D. $36,000 debit.
83. An $800 debit item is accidentally posted as a credit. The trial balance column totals will therefore differ by
A. $0
B. $400
C. $800
D. $1,600
84. The trial balance for Parker Company is as follows:
Parker Company
Trial Balance
January 31, 2014
Cash
$ 6,000
Accounts Receivable
4,000
Art Supplies
6,000
Office Supplies
10,000
Prepaid Rent
14,000
Prepaid Insurance
10,000
Art Equipment
10,000
Office Equipment
6,000
Accounts Payable
$ 10,000
Mike Parker, Capital
30,000
Mike Parker, Withdrawals
?
Advertising Fees Earned
?
Wages Expense
?
Utilities Expense
10,000
Telephone Expense
6,000
________
$ A
$ B
If the balance of the Mike Parker, Withdrawals account were $100,000 and the balance of the Wages Expense account were $10,000, what would be the amount of B?
A. $124,000
B. $150,000
C. $192,000
D. $152,000
85. The trial balance for Parker Company is as follows:
Parker Company
Trial Balance
January 31, 2014
Cash
$ 6,000
Accounts Receivable
4,000
Art Supplies
6,000
Office Supplies
10,000
Prepaid Rent
14,000
Prepaid Insurance
10,000
Art Equipment
10,000
Office Equipment
6,000
Accounts Payable
$ 10,000
Mike Parker, Capital
30,000
Mike Parker, Withdrawals
?
Advertising Fees Earned
?
Wages Expense
?
Utilities Expense
10,000
Telephone Expense
6,000
________
$ A
$ B
If the trial balance showed a balance of $14,000 in the Mike Parker, Withdrawals account and a balance of $30,000 in the Wages Expense account, what would be the amount of Advertising Fees Earned for the period?
A. $106,000
B. $86,000
C. $116,000
D. $56,000